State Agency’s Opinion Eases Way for Water Justice Clinic Project

UC Davis Law’s Water Justice Clinic received welcome news in early September, when the California Department of Financial Protection and Innovation informed the clinic that Sierra Grande Estates Mutual Water Company in Inyo County is not subject to the corporate securities law.

The clinic is assisting Sierra Grande and its neighboring small water community, Sierra North Community Services District, with their drinking water issues. As a solution to those issues, Sierra North will merge with Sierra Grande, and Sierra Grande will issue new corporate membership to customers joining from Sierra North. 

To speed up the process, Sierra Grande had sought clarification on whether the new memberships are subject to corporate securities law. The clinic therefore sought an opinion from DFPI, which concluded that Sierra Grande is not subject to those laws. 

Water Justice Clinic Director David Sandino noted that 3L students Julia Finney, Rachel Kennard and Cameron Randazzo-VanZant did substantial research on this issue while part of the clinic last year. They drafted the letter sent to the DFPI for its consideration.